When the time of taking a loan comes, one tends to look out for the best deals like low rate of interest, minimum paperwork, and quick processing. This is why many people think it is better to opt for an automated money lender than a licensed one because they offer faster approvals and more flexible repayment plans.
While this might be true, the reality is licensed money lenders can offer much more benefits than their unlicensed counterparts – including ease of access and the fact that you don’t need to go through any lengthy processes or credit checks.
Services of automated moneylenders are preferred by many owing to comparative ease in the loan process. However, a crucial issue with automated moneylenders is that they tend to have high-interest rates, sometimes as high as 48 percent. When you are returning the loan, this high amount tends to be compounded.
You could end up owing quite a bit of money for something that might have initially only been several hundred dollars or so in total. Moreover, it is not just you who will be affected by using automated lenders. Your family members and loved ones will also suffer.
If you happen to default on repayment despite knowing fully well that you should pay it back, your credit score will decrease. Your family members’ scores may also be affected, which can cause problems when they try to buy homes in the future.
A good thing about licensed moneylenders is that they help you out in the long term. If something comes up, you can contact them and ask for an extension on your repayment date.
They will not see this as a problem to avoid any potential issues with your credit score.
As long as you stick with a licensed moneylender, you should have no problems taking loans from them. It is always better for your finances and well-being if you don’t go down the road of automated lenders. Instead, stick with the safer and lower interest rates of licensed moneylenders.
Licensed moneylenders are more responsible. According to reports, private legal financiers do not charge a late fee of more than $60 in Singapore. Other benefits they offer over automated lenders are:
Just make sure you clear all your outstanding loans with them before going for this option.
The pandemic has been a massive blow to the global economy. People are struggling to meet two ends. Hence, money lenders in Singapore are in huge demand.
It is essential to research and find a legally working financier to get a loan in Singapore. They will work according to the rules defined by the Ministry of Law in Singapore.
Also Read- Finding the Best Money Lender in Clementi
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